Natixis acted as Co-Green Loan Coordinator for the first post-IRA large renewable energy transaction in the United States

IRG Acquisition Holdings (IRGAH), a partnership between Invenergy, a leading privately held developer, owner, and operator of sustainable energy solutions, Caisse de Depôt et placement du Québec (CDPQ) and funds managed by Blackstone Infrastructure Partners (Blackstone), has closed, in August 2023, the acquisition of American Electric Power’s (AEP) 1,365-megawatt (MW) unregulated, contracted renewables portfolio for $1.5 billion enterprise value.

The portfolio includes 14 projects in 11 states and is comprised of 1,200 MW of wind generation and 165 MW of solar projects. The renewable power generated by these projects is contracted under long-term agreements with various utilities, corporations, and municipalities.

This is the first large renewable energy transaction to leverage tax credit transferability provisions passed under the 2022 Inflation Reduction Act (IRA). The IRA represents the most significant US climate legislation offering Tax Credits and grants, to spur investments towards clean energy, electrification, and emerging technologies. Under the IRA, renewables and storage sector will, for instance, benefit from investment Tax Credit (e.g., 30% for Solar and Storage) and Production Tax Credit (up to 1.5c/kWh for Solar, Wind, Hydro, Biomass and Geothermal). These inflation-protected credits will likely allow more certainty for long-term investments in renewables projects.

Natixis acted as Coordinating Lead Arranger and Co-Green Loan Coordinator.